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Emaar Properties PJSC may have the backing of analysts but investors are somewhat deterred by the prospects for Dubai’s real estate market.
Thursday 06, December 2018
(Bloomberg)--Shares of the developer of the iconic Burj Khalifa skyscraper have lost 36 per cent this year, bringing its estimated price-to-earnings ratio for the next 12 months to the lowest level since early 2010. The valuation has prompted six analysts to update their view with either a buy or overweight recommendation.
So far to no avail.
A recovery of the local real-estate market doesn’t appear to be happening any time soon with rival developers predicting a difficult year ahead. Demand is faltering as an oversupply has become more evident mostly in the residential market.
Emaar Properties, the biggest listed developer in the UAE, posted the lowest quarterly profit in almost three years in the period ended September. Meanwhile, the central bank said this week property prices decreased 7.4 per cent in the September quarter from a year earlier.
The stock closed at AED 4.44 on Wednesday.